A couple of key factors here need to come into play, inflation figures need to come back worse than expected in July, followed by the fed becoming more hawkish with their monetary policy. Australia will follow suit and hit that cash rate target of 3-4%. Cost of living isn't taking a reprieve and the mining industry isn't saving the australian economy atm. If we see a reversal of QT from the fed we could see a bounce in risk on markets. But for now the USD looks to reign supreme. Shorting the bear flag to 0.6780 with a breakdown in the support we could see a bearish continuation to 0.6100! Things are getting spicy and you're kidding yourself if you think the markets seen the last of volatility. NFA DYOR
Trade closed: target reached:
Trade target reached, with poor inflation data and hawkisk mentary policy we could see the AUDUSD breakdown out of this channel to 0.61, otherwise a bounce would mean about 0.74
Trade active:
A short from here looks promising, covid issues in china, US inflation, commodity prices dropping, the DXY pumping all point to the AUD depreciating vs the USD
